[Sylvanfan]

I don't know, if you put 5% down on a condo, live in it as opposed to rent it and the property grows at the rate of inflation chances are you'll come out ahead. IMO you put down 5% into something and get growth on 20 times the amount you put in and if you live there it's tax free. IMO that 12500 is netting you a say a conservative 3% retun on 250k, well that 12500 made you 10500 in one year. Name me a low risk investment that will give you that type of return, tax free. You can invest that money in RRSP's but 12500 needs to grow at a much higher percentage for a number of years to outpace the 250k condo growing at 3%. Than factor in what you're paying in rent and who knows. And don't kid yourself investing in stocks, mutual funds is as volatile or more risky than real estate is.

I mean it comes down to what you need and what you want. You need a place to live, but if you're a single person you don't need to live in a house. You can get by renting a room off someone, thats really all you need. But doesn't mean it's a dumb idea to buy a 2 bedroom condo rent out half of it and pay a bit more, especially if the rental prices are good. If you have a family with two kids than you probably need something with 2-3 bedrooms and a bit more space, but it doesn't mean you need a house, maybe a townhouse or duplex will do.